An Act to amend and reenact §4.1-208 of the Code of Virginia
and to amend the Code of Virginia by adding a section numbered 15.2-2288.3:1,
relating to breweries located on farms; local regulation of certain activities.

[S 430]

Approved March 27, 2014

Be it enacted by the General Assembly of Virginia:

1. That §4.1-208 of the Code of Virginia is amended and
reenacted and that the Code of Virginia is amended by adding a section numbered
15.2-2288.3:1 as follows:

§4.1-208. Beer licenses.

The Board may grant the following licenses relating to beer:

1. Brewery licenses, which shall authorize the licensee to
manufacture beer and to sell and deliver or ship the beer so manufactured, in
accordance with Board regulations, in closed containers to (i) persons licensed
to sell the beer at wholesale; (ii) persons licensed to sell beer at retail for
the purpose of resale within a theme or amusement park owned and operated by
the brewery or a parent, subsidiary or a company under common control of such
brewery, or upon property of such brewery or a parent, subsidiary or a company
under common control of such brewery contiguous to such premises, or in a
development contiguous to such premises owned and operated by such brewery or a
parent, subsidiary or a company under common control of such brewery; and (iii)
persons outside the Commonwealth for resale outside the Commonwealth. Such
license shall also authorize the licensee to sell at retail the brands of beer
that the brewery owns at premises described in the brewery license for
on-premises consumption and in closed containers for off-premises consumption.

Such license may also authorize individuals holding a brewery
license to (a) operate a facility designed for and utilized exclusively for the
education of persons in the manufacture of beer, including sampling by such
individuals of beer products, within a theme or amusement park located upon the
premises occupied by such brewery, or upon property of such person contiguous
to such premises, or in a development contiguous to such premises owned and
operated by such person or a wholly owned subsidiary or (b) offer samples of
the brewery's products to individuals visiting the licensed premises, provided
that such samples shall be provided only to individuals for consumption on the
premises of such facility or licensed premises and only to individuals to whom
such products may be lawfully sold.

2. Limited brewery licenses, to breweries that manufacture
no more than 15,000 barrels of beer per calendar year, provided (i) the brewery
is located on a farm in the Commonwealth on land zoned agricultural and owned
or leased by such brewery or its owner and (ii) agricultural products,
including barley, other grains, hops, or fruit, used by such brewery in the
manufacture of its beer are grown on the farm. The licensed premises shall be
limited to the portion of the farm on which agricultural products, including
barley, other grains, hops, or fruit, used by such brewery in the manufacture
of its beer are grown and that is contiguous to the premises of such brewery
where the beer is manufactured, exclusive of any residence and the curtilage
thereof. However, the Board may, with notice to the local governing body in
accordance with the provisions of §4.1-230, also approve other portions of the
farm to be included as part of the licensed premises.

Limited brewery licensees shall be treated as breweries for
all purposes of this title except as otherwise provided in this subdivision.

3. Bottlers' licenses, which shall authorize the
licensee to acquire and receive deliveries and shipments of beer in closed
containers and to bottle, sell and deliver or ship it, in accordance with Board
regulations to (i) wholesale beer licensees for the purpose of resale, (ii)
owners of boats registered under the laws of the United States sailing for ports
of call of a foreign country or another state, and (iii) persons outside the
Commonwealth for resale outside the Commonwealth.

3. 4. Wholesale beer licenses, which shall
authorize the licensee to acquire and receive deliveries and shipments of beer
and to sell and deliver or ship the beer from one or more premises identified
in the license, in accordance with Board regulations, in closed containers to
(i) persons licensed under this chapter to sell such beer at wholesale or
retail for the purpose of resale, (ii) owners of boats registered under the
laws of the United States sailing for ports of call of a foreign country or
another state, and (iii) persons outside the Commonwealth for resale outside
the Commonwealth.

No wholesale beer licensee shall purchase beer for resale from
a person outside the Commonwealth who does not hold a beer importer's license
unless such wholesale beer licensee holds a beer importer's license and
purchases beer for resale pursuant to the privileges of such beer importer's license.

4. 5. Beer importers' licenses, which shall
authorize persons licensed within or outside the Commonwealth to sell and
deliver or ship beer into the Commonwealth, in accordance with Board
regulations, in closed containers, to persons in the Commonwealth licensed to
sell beer at wholesale for the purpose of resale.

5. 6. Retail on-premises beer licenses to:

a. Hotels, restaurants and clubs, which shall authorize the
licensee to sell beer, either with or without meals, only in dining areas and
other designated areas of such restaurants, or in dining areas, private guest
rooms, and other designated areas of such hotels or clubs, for consumption only
in such rooms and areas.

b. Persons operating dining cars, buffet cars, and club cars
of trains, which shall authorize the licensee to sell beer, either with or
without meals, in the dining cars, buffet cars, and club cars so operated by
them for on-premises consumption when carrying passengers.

c. Persons operating sight-seeing boats, or special or charter
boats, which shall authorize the licensee to sell beer, either with or without
meals, on such boats operated by them for on-premises consumption when carrying
passengers.

d. Grocery stores located in any town or in a rural area
outside the corporate limits of any city or town, which shall authorize the
licensee to sell beer for on-premises consumption in such establishments. No
license shall be granted unless it appears affirmatively that a substantial
public demand for such licensed establishment exists and that public
convenience and the purposes of this title will be promoted by granting the
license.

e. Persons operating food concessions at coliseums, stadia, or
similar facilities, which shall authorize the licensee to sell beer, in paper,
plastic, or similar disposable containers, during the performance of
professional sporting exhibitions, events or performances immediately
subsequent thereto, to patrons within all seating areas, concourses, walkways,
concession areas, and additional locations designated by the Board in such
coliseums, stadia, or similar facilities, for on-premises consumption. Upon
authorization of the licensee, any person may keep and consume his own lawfully
acquired alcoholic beverages on the premises in all areas and locations covered
by the license.

f. Persons operating food concessions at any outdoor
performing arts amphitheater, arena or similar facility which has seating for
more than 3,500 persons and is located in Albemarle, Augusta, Pittsylvania, or
Rockingham Counties. Such license shall authorize the licensee to sell beer
during the performance of any event, in paper, plastic or similar disposable
containers to patrons within all seating areas, concourses, walkways,
concession areas, or similar facilities, for on-premises consumption. Upon
authorization of the licensee, any person may keep and consume his own lawfully
acquired alcoholic beverages on the premises in all areas and locations covered
by the license.

g. Persons operating food concessions at exhibition or exposition
halls, convention centers or similar facilities located in any county operating
under the urban county executive form of government or any city which is
completely surrounded by such county, which shall authorize the licensee to
sell beer during the event, in paper, plastic or similar disposable containers
to patrons or attendees within all seating areas, exhibition areas, concourses,
walkways, concession areas, and such additional locations designated by the
Board in such facilities, for on-premises consumption. Upon authorization of
the licensee, any person may keep and consume his own lawfully acquired
alcoholic beverages on the premises in all areas and locations covered by the
license. For purposes of this subsection, "exhibition or exposition halls"
and "convention centers" mean facilities conducting private or public
trade shows or exhibitions in an indoor facility having in excess of 100,000
square feet of floor space.

7. 8. Retail off-premises brewery licenses to
persons holding a brewery license which shall authorize the licensee to sell
beer at the place of business designated in the brewery license, in closed
containers which shall include growlers and other reusable containers, for
off-premises consumption.

A. It is the policy of the Commonwealth to preserve the
economic vitality of the Virginia beer industry while maintaining appropriate
land use authority to protect the health, safety, and welfare of the citizens
of the Commonwealth and to permit the reasonable expectation of uses in
specific zoning categories. Local restriction upon such activities and public
events of breweries licensed pursuant to subdivision 2 of §4.1-208 to market
and sell their products shall be reasonable and shall take into account the
economic impact on such licensed brewery of such restriction, the agricultural
nature of such activities and events, and whether such activities and events
are usual and customary for such licensed breweries. Usual and customary
activities and events at such licensed breweries shall be permitted unless
there is a substantial impact on the health, safety, or welfare of the public.
No local ordinance regulating noise, other than outdoor amplified music,
arising from activities and events at such licensed breweries shall be more
restrictive than that in the general noise ordinance. In authorizing outdoor
amplified music at such licensed brewery, the locality shall consider the
effect on adjacent property owners and nearby residents.

B. No locality shall regulate any of the following
activities of a brewery licensed under subdivision 2 of §4.1-208:

1. The production and harvesting of barley, other grains,
hops, fruit, or other agricultural products and the manufacturing of beer;

2. The on-premises sale, tasting, or consumption of beer
during regular business hours within the normal course of business of such
licensed brewery;

3. The direct sale and shipment of beer in accordance with
Title 4.1 and regulations of the Alcoholic Beverage Control Board;

4. The sale and shipment of beer to licensed wholesalers
and out-of-state purchasers in accordance with Title 4.1, regulations of the
Alcoholic Beverage Control Board, and federal law;

5. The storage and warehousing of beer in accordance with
Title 4.1, regulations of the Alcoholic Beverage Control Board, and federal
law; or

6. The sale of beer-related items that are incidental to
the sale of beer.

C. Any locality may exempt any brewery licensed in
accordance with subdivision 2 of §4.1-208 on land zoned agricultural from any
local regulation of minimum parking, road access, or road upgrade requirements.